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Form 6-K Filing
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of: August 2015

Commission File Number: 001-34656

______________________

China Lodging Group, Limited
(Exact name of registrant as specified in its charter)

No. 2266 Hongqiao Road
Changning District
Shanghai 200336
People's Republic of China
(86) 21 6195-2011
(Address of principal executive office)

______________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ x]      Form 40-F [  ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):       

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):       

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  China Lodging Group, Limited
By:  /s/ Min (Jenny) Zhang
Name:      Min (Jenny) Zhang
Title: Chief Executive Officer
Date: August 18, 2015

EXHIBIT INDEX

Exhibit Number Description
Exhibit 99.1 China Lodging Group, Limited Reports Second Quarter of 2015 Financial Results

China Lodging Group, Limited Reports Second Quarter of 2015 Results

EXHIBIT 99.1

China Lodging Group, Limited Reports Second Quarter of 2015 Results

SHANGHAI, China, Aug. 17, 2015 (GLOBE NEWSWIRE) -- China Lodging Group, Limited (NASDAQ:HTHT) ("China Lodging Group" or the "Company"), a leading and fast-growing multi-brand hotel group in China, today announced its unaudited financial results for the second quarter ended June 30, 2015.

Second Quarter 2015 Operational Highlights

Second Quarter 2015 Financial Results

(RMB in thousands) Q2 2014 Q1 2015 Q2 2015
Revenues:      
Leased hotels  1,145,597  1,055,541  1,269,125
Manachised and franchised hotels  177,409  226,283  273,259
Total revenues  1,323,006  1,281,824  1,542,384
Less: business tax and related surcharges  (76,035)  (71,454)  (84,625)
Net revenues  1,246,971  1,210,370  1,457,759

Total revenues for the second quarter of 2015 were RMB1,542.4 million (US$248.8 million), representing a 16.6% year-over-year increase and a 20.3% sequential increase. The year-over-year increase was primarily due to our hotel network expansion. The sequential increase was due to seasonality.

Total revenues from leased hotels for the second quarter of 2015 were RMB1,269.1 million (US$204.7 million), representing a 10.8% year-over-year increase and a 20.2% sequential increase.

Total revenues from manachised and franchised hotels for the second quarter of 2015 were RMB273.3 million (US$44.1 million), representing a 54.0% year-over-year increase and a 20.8% sequential increase. Total revenues from manachised and franchised hotels accounted for 17.7% of total revenues for the second quarter of 2015, compared to 13.4% for the second quarter of 2014.

Net revenues for the second quarter of 2015 were RMB1,457.8 million (US$235.1 million), representing a 16.9% year-over-year increase and a 20.4% sequential increase.

(RMB in thousands) Q2 2014 Q1 2015 Q2 2015
Operating costs and expenses:      
 Hotel operating costs  928,860  1,058,624  1,088,159
 Selling and marketing expenses  37,252  45,828  44,566
 General and administrative expenses   78,280  77,942  95,408
 Pre-opening expenses  50,072  34,593  31,553
Total operating costs and expenses  1,094,464  1,216,987  1,259,686

Hotel operating costs for the second quarter of 2015 were RMB1,088.2 million (US$175.5 million), compared to RMB928.9 million (US$149.7 million) in the second quarter of 2014 and RMB1,058.6 million (US$170.8 million) in the previous quarter, representing a 17.1% year-over-year increase and a 2.8% sequential increase. The increase was mainly driven by the increased number of leased hotels. Total hotel operating costs excluding share-based compensation expenses (non-GAAP) for the second quarter of 2015 were RMB1,086.3 million (US$175.2 million), representing 74.5% of net revenues, compared to 74.4% for the second quarter in 2014 and 87.4% for the previous quarter. The sequential decrease in the percentage was mainly due to seasonality.

Selling and marketing expenses for the second quarter of 2015 were RMB44.6 million (US$7.2 million), compared to RMB37.3 million (US$6.0 million) in the second quarter of 2014 and RMB45.8 million (US$7.4 million) in the previous quarter, representing a 19.6% year-over-year increase and a 2.8% sequential decrease. Selling and marketing expenses excluding share-based compensation expenses (non-GAAP) for the second quarter of 2015 were RMB44.3 million (US$7.1 million), or 3.1% of net revenues, compared to 3.0% for the second quarter of 2014 and 3.8% for the previous quarter. The sequential decrease was mainly due to decreased marketing activities in the second quarter of 2015.

General and administrative expenses for the second quarter of 2015 were RMB95.4 million (US$15.4 million), compared to RMB78.3 million (US$12.6 million) in the second quarter of 2014 and RMB77.9 million (US$12.6 million) in the previous quarter, representing a 21.9% year-over-year increase and a 22.4% sequential increase. General and administrative expenses excluding share-based compensation expenses (non-GAAP) for the second quarter of 2015 were RMB84.3 million (US$13.6 million), representing 5.7% of net revenues, compared with 5.9% of net revenues in the second quarter of 2014 and 5.5% in the previous quarter.

Pre-opening expenses for the second quarter of 2015 were RMB31.6 million (US$5.1 million), representing a 37.0% year-over-year decrease and an 8.8% sequential decrease. The decreases were mainly due to fewer leased hotels opened and in the pipeline in the second quarter of 2015.

Income from operations for the second quarter of 2015 was RMB199.7 million (US$32.2 million), compared to income from operations of RMB158.3 million (US$25.5 million) in the second quarter of 2014 and loss from operations of RMB10.8 million (US$1.7 million) in the previous quarter. Excluding share-based compensation expenses, adjusted income from operations (non-GAAP) for the second quarter of 2015 was RMB213.0 million (US$34.4 million), compared to RMB165.2 million (US$26.6 million) for the second quarter of 2014 and RMB1.6 million (US$0.3 million) for the previous quarter. The adjusted operating margin, defined as adjusted operating income as percentage of net revenues, for the second quarter of 2015 was 14.6%, compared with 13.2% in the second quarter of 2014. The improved operating margin was mainly due to the decreased pre-opening expenses and the increased proportion of revenues from manachised and franchised hotels, which are high-margin businesses.

Net income attributable to China Lodging Group, Limited for the second quarter of 2015 was RMB149.2 million (US$24.1 million), compared to net income attributable to China Lodging Group, Limited of RMB124.2 million (US$20.0 million) in the second quarter of 2014 and net loss attributable to China Lodging Group, Limited of RMB7.0 million (US$1.1 million) in the previous quarter. Excluding share-based compensation expenses, adjusted net income attributable to China Lodging Group, Limited (non-GAAP) for the second quarter of 2015 was RMB162.5 million (US$26.2 million), compared to RMB131.2 million (US$21.1 million) in the second quarter of 2014 and RMB5.4 million (US$0.9 million) in the previous quarter.

Basic and diluted earnings per share/ADS. For the second quarter of 2015, basic earnings per share were RMB0.59 (US$0.10) and diluted earnings per share were RMB0.58 (US$0.09); basic earnings per ADS were RMB2.37 (US$0.38) and diluted earnings per ADS were RMB2.32 (US$0.37). For the second quarter of 2015, excluding share-based compensation expenses, adjusted basic earnings per share (non-GAAP) were RMB0.65 (US$0.10) and adjusted diluted earnings per share (non-GAAP) were RMB0.63 (US$0.10); adjusted basic earnings per ADS (non-GAAP) were RMB2.59 (US$0.42) and adjusted diluted earnings per ADS (non-GAAP) were RMB2.53 (US$0.41).

EBITDA (non-GAAP) for the second quarter of 2015 was RMB364.6 million (US$58.8 million), compared with RMB304.3 million (US$49.1 million) in the second quarter of 2014 and RMB148.8 million (US$24.0 million) in the previous quarter. Excluding share-based compensation expenses, adjusted EBITDA (non-GAAP) for the second quarter of 2015 was RMB377.9 million (US$60.9 million), compared with RMB311.2 million (US$50.2 million) for the second quarter of 2014 and RMB161.2 million (US$26.0 million) for the previous quarter, representing a 21.4% year-over-year increase and 134.5% sequential increase. Adjusted EBITDA margin, defined as adjusted EBITDA (non-GAAP) as percentage of net revenues, was 25.9%, improving from 25.0% in the second quarter of 2014.

Hotel income (non-GAAP), which is the difference between net revenues and hotel operating costs, was RMB369.6 million (US$59.6 million) for the second quarter of 2015, compared with RMB318.1 million (US$51.3 million) in the second quarter of 2014 and RMB151.7 million (US$24.5 million) in the previous quarter. During the second quarter of 2015, the hotel income from the mature leased hotels (in operation for at least six months) was RMB180.7 million (US$29.1 million), and the hotel loss from the new leased hotels (in operation for less than six months) was RMB5.7 (US$0.9 million). The hotel income from the manachised and franchised hotels was RMB194.6 million (US$31.4 million), accounting for 53% of total hotel income during the second quarter of 2015.

Cash flow. Operating cash inflow for the second quarter of 2015 was RMB474.0 million (US$76.4 million). Investing cash outflow for the second quarter of 2015 was RMB351.8 million (US$56.7 million).

Cash and cash equivalents. As of June 30, 2015, the Company had a total balance of cash and cash equivalents of RMB893.5 million (US$144.1 million).

Debt financing. As of June 30, 2015, the Company had a short-term loan balance of RMB99.5 million and the total credit facility available to the Company was RMB399.8 million.

Business Outlook and Guidance for Third Quarter of 2015

"We remain confident about the long-term prospects of the overall travel and lodging market in China. Thanks to our successful brand positioning and proven results, we have continued to see a robustly growing pipeline, with another record high of 740 hotels as end of second quarter this year. In particular, the number of manachised and franchised hotels in the pipeline grew by 57% year-over-year. We are excited about the growth of our core brand HanTing and the successful roll-out of our new brands among customers and franchisees," commented Mr. Qi Ji, founder, and Executive Chairman of China Lodging Group.

Mr. Ji added, "We focus on strengthening our diversified brand portfolio, building scale, elevating customer experience and generating profits to hotel owners through highly-efficient operations. We look forward to deliver long-term value to our shareholders."

The Company expects net revenues for the third quarter of 2015 to grow 11.5% to 13.5% year-over-year. The Company raised full year net revenues forecast to grow 11.5% to 13.5%.

The above forecast reflects the Company's current and preliminary view, which is subject to change.

Recent Development

As of August 14, 2015, the Company had purchased approximately 0.77 million ADS in aggregate with a total consideration of US$17.5 million.

Conference Call

China Lodging Group's management will host a conference call at 9 p.m. ET, Monday, August 17, 2015 (or 9 a.m. on Tuesday, August 18, 2015 in the Shanghai/Hong Kong time zone) following the announcement. To participate in the event by telephone, please dial +1 (855) 500 8701 (for callers in the US), +86 400 120 0654 (for callers in China Mainland), +852 3018 6776 (for callers in Hong Kong) or +65 6713 5440 (for callers outside of the US, China Mainland, and Hong Kong) and entering pass code 8460 8277. Please dial in approximately 10 minutes before the scheduled time of the call.

A recording of the conference call will be available after the conclusion of the conference call through August 24, 2015. Please dial +1 (855) 452 5696 (for callers in the US) or +61 2 9003 4211 (for callers outside the US) and entering pass code 8460 8277.

The conference call will also be webcast live over the Internet and can be accessed by all interested parties at the Company's website, http://ir.huazhu.com.

Use of Non-GAAP Financial Measures

To supplement the Company's unaudited consolidated financial results presented in accordance with U.S. GAAP, the Company uses the following non-GAAP measures defined as non-GAAP financial measures by the SEC: hotel operating costs excluding share-based compensation expenses; general and administrative expenses excluding share-based compensation expenses; selling expenses excluding share-based compensation expenses; adjusted income from operations excluding share-based compensation expenses; adjusted operating margin excluding share-based compensation expenses; adjusted net income attributable to China Lodging Group, Limited excluding share-based compensation expenses; adjusted basic and diluted earnings per share and per ADS excluding share-based compensation expenses; EBITDA; adjusted EBITDA excluding share-based compensation expenses; and hotel income. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this release. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding Company performance by excluding share-based compensation expenses that may not be indicative of Company operating performance. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Company performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance. The Company believes these non-GAAP financial measures are also useful to investors in allowing for greater transparency with respect to supplemental information used regularly by Company management in financial and operational decision-making. A limitation of using non-GAAP financial measures excluding share-based compensation expenses is that share-based compensation expenses have been – and will continue to be – a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.

The Company believes that EBITDA is a useful financial metric to assess the operating and financial performance before the impact of investing and financing transactions and income taxes, given the significant investments that the Company has made in leasehold improvements, depreciation and amortization expense that comprise a significant portion of the Company's cost structure. In addition, the Company believes that EBITDA is widely used by other companies in the lodging industry and may be used by investors as a measure of financial performance. The Company believes that EBITDA will provide investors with a useful tool for comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures. The Company also uses adjusted EBITDA, which is defined as EBITDA before share-based compensation expenses, to assess operating results. The Company believes that the exclusion of share-based compensation expenses helps facilitate year-on-year comparison of the results of operations as the share-based compensation expenses may not be indicative of Company operating performance. The presentation of EBITDA and adjusted EBITDA should not be construed as an indication that the Company's future results will be unaffected by other charges and gains considered to be outside the ordinary course of business.

The use of EBITDA and adjusted EBITDA has certain limitations. Depreciation and amortization expense for various long-term assets, income tax and interest expense have been and will be incurred and are not reflected in the presentation of EBITDA. Share-based compensation expenses have been and will be incurred and are not reflected in the presentation of adjusted EBITDA. Each of these items should also be considered in the overall evaluation of the results. The Company compensates for these limitations by providing the relevant disclosure of the depreciation and amortization, interest income, interest expense, income tax expense, share-based compensation expenses and other relevant items both in the reconciliations to the U.S. GAAP financial measures and in the consolidated financial statements, all of which should be considered when evaluating the performance of the Company.

The terms EBITDA and adjusted EBITDA are not defined under U.S. GAAP, and neither EBITDA nor adjusted EBITDA is a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. When assessing the operating and financial performance, investors should not consider these data in isolation or as a substitute for the Company's net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP. In addition, the Company's EBITDA or adjusted EBITDA may not be comparable to EBITDA or adjusted EBITDA – or similarly titled measures utilized by other companies – since such other companies may not calculate EBITDA or adjusted EBITDA in the same manner as the Company does.

To monitor performance of hotels at different maturity level and of different form, the Company also tracks hotel income, which is the difference between net revenues and hotel operating costs.

Reconciliations of the Company's non-GAAP financial measures, including EBITDA, adjusted EBITDA, and hotel income, to the consolidated statement of operations information are included at the end of this press release.

About China Lodging Group, Limited

China Lodging Group, Limited is a leading and fast-growing multi-brand hotel group in China. The Company provides business and leisure travelers with high-quality, and conveniently-located hotel products under seven brands, namely, Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, HanTing Hotel, Elan Hotel, and Hi Inn. For more information, please visit the Company's website: http://ir.huazhu.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties, including statements regarding the Company's capital needs, business strategy and expectations. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as "may," "should," "will," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," "forecast," "project," or "continue," the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results. Any or all of the Company's forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions, risks and uncertainties and other factors which could cause actual events or results to be materially different from those expressed or implied in the forward-looking statements. In evaluating these statements, readers should consider various factors, including the anticipated growth strategies of the Company, the future results of operations and financial condition of the Company, the economic conditions of China, the regulatory environment in China, the Company's ability to attract customers and leverage its brands, trends and competition in the lodging industry, the expected growth of the lodging market in China and other factors and risks outlined in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 20-F and other filings.These factors may cause the Company's actual results to differ materially from any forward-looking statement. In addition, new factors emerge from time to time and it is not possible for the Company to predict all factors that may cause actual results to differ materially from those contained in any forward-looking statements. Any projections in this release are based on limited information currently available to the Company, which is subject to change. This release also contains statements or projections that are based upon information available to the public, as well as other information from sources which the Company believes to be reliable, but it is not guaranteed by the Company to be accurate, nor does the Company purport it to be complete. The Company disclaims any obligation to publicly update any forward-looking statements to reflect events or circumstances after the date of this document, except as required by applicable law.

1 The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB6.2000 on June 30, 2015 as set forth in H.10 statistical release of the U.S. Federal Reserve Board and available at http://www.federalreserve.gov/releases/h10/hist/dat00_ch.htm.

2 Each ADS represents four of the Company's ordinary shares.

---Financial Tables and Operational Data Follow—

China Lodging Group, Limited 
Unaudited Condensed Consolidated Balance Sheets
  December 31, 2014 June 30, 2015  
  RMB RMB US$
  (in thousands)
ASSETS      
Current assets:      
 Cash and cash equivalents  808,865  893,476  144,109
 Short-term investments  26,615  271,385  43,772
 Accounts receivable, net  89,243  94,023  15,165
 Amounts due from related parties  16,293  16,796  2,709
 Prepaid rent  385,158  420,269  67,785
 Inventories  29,882  27,371  4,415
 Other current assets  160,582  145,908  23,534
 Deferred tax assets  80,026  80,026  12,907
 Total current assets  1,596,664  1,949,254  314,396
       
Property and equipment, net  3,907,343  3,855,014  621,776
Intangible assets, net  104,537  112,631  18,166
Long-term investments  229,005  294,224  47,456
Goodwill  64,654  64,654  10,428
Other assets  197,233  201,986  32,578
Deferred tax assets  83,470  83,470  13,463
Total assets  6,182,906  6,561,233  1,058,263
       
LIABILITIES AND EQUITY      
Current liabilities:      
 Short-term debt  --   99,489  16,047
 Accounts payable  640,691  534,108  86,146
 Amounts due to a related party  6,403  9,936  1,602
 Salary and welfare payables  186,051  160,215  25,841
 Deferred revenue  514,268  583,661  94,139
 Accrued expenses and other current liabilities  313,017  349,547  56,379
 Income tax payable  59,630  50,119  8,084
 Deferred tax liabilities  701  701  113
 Total current liabilities  1,720,761  1,787,776  288,351
       
Deferred rent  830,414  887,429  143,134
Deferred revenue  155,395  168,312  27,147
Amounts due to a related party  4,083  2,042  329
Other long-term liabilities  215,762  251,486  40,562
Deferred tax liabilities  37,778  37,778  6,093
Total liabilities  2,964,193  3,134,823  505,616
       
Equity:      
 Ordinary shares  184  184  30
 Additional paid-in capital  2,381,568  2,419,038  390,167
 Retained earnings  847,220  989,413  159,583
 Accumulated other comprehensive income (loss)  (12,008)  16,222  2,616
Total China Lodging Group, Limited shareholders' equity  3,216,964  3,424,857  552,396
 Noncontrolling interest  1,749  1,553  251
Total equity  3,218,713  3,426,410  552,647
Total liabilities and equity  6,182,906  6,561,233  1,058,263
 
China Lodging Group, Limited 
Unaudited Condensed Consolidated Statements of Comprehensive Income
  Quarter Ended
  June 30, 2014 March 31, 2015 June 30, 2015  
  RMB RMB RMB US$
  (in thousands, except per share and per ADS data)
Revenues:        
 Leased hotels  1,145,597  1,055,541  1,269,125  204,697
 Manachised and franchised hotels  177,409  226,283  273,259  44,074
Total revenues  1,323,006  1,281,824  1,542,384  248,771
 Less: business tax and related surcharges  (76,035)  (71,454)  (84,625)  (13,649)
Net revenues  1,246,971  1,210,370  1,457,759  235,122
         
Operating costs and expenses:        
 Hotel operating costs:        
 Rents  (380,711)  (432,697)  (441,462)  (71,204)
 Utilities  (60,627)  (108,454)  (65,404)  (10,549)
 Personnel costs  (189,653)  (207,650)  (232,082)  (37,432)
 Depreciation and amortization   (134,206)  (156,417)  (162,573)  (26,221)
 Consumables, food and beverage   (114,399)  (105,675)  (123,704)  (19,952)
 Others  (49,264)  (47,731)  (62,934)  (10,151)
 Total hotel operating costs  (928,860)  (1,058,624)  (1,088,159)  (175,509)
 Selling and marketing expenses  (37,252)  (45,828)  (44,566)  (7,188)
 General and administrative expenses   (78,280)  (77,942)  (95,408)  (15,388)
 Pre-opening expenses  (50,072)  (34,593)  (31,553)  (5,089)
Total operating costs and expenses  (1,094,464)  (1,216,987)  (1,259,686)  (203,174)
 Other operating income (expense), net  5,743  (4,152)  1,589  256
Income (loss) from operations  158,250  (10,769)  199,662  32,204
Interest income  4,838  3,671  7,757  1,251
Interest expense  (320)  (173)  (168)  (27)
Other income (expense), net  5,545  (1,030)  3,815  615
Foreign exchange gain (loss)  37  151  (3,663)  (591)
Income (loss) before income taxes  168,350  (8,150)  207,403  33,452
Income tax benefit (expense)  (47,628)  934  (56,432)  (9,102)
Net income (loss)  120,722  (7,216)  150,971  24,350
Less: net loss (income) attributable to noncontrolling interests  3,522  223  (1,785)  (288)
Net income (loss) attributable to China Lodging Group, Limited  124,244  (6,993)  149,186  24,062
Other comprehensive income        
Unrealized securities holding gains, net of tax  27,082  22,429  7,397  1,193
Foreign currency translation adjustments, net of tax   48  (1,912)  316  51
Comprehensive income  147,852  13,301  158,684  25,594
Comprehensive loss (income) attributable to the noncontrolling interest  3,522  223  (1,785)  (288)
Comprehensive income attributable to China Lodging Group, Limited  151,374  13,524  156,899  25,306
         
Earnings (loss) per share:        
 Basic  0.50  (0.03)  0.59  0.10
 Diluted  0.49  (0.03)  0.58  0.09
         
Earnings (loss) per ADS:        
 Basic  2.00  (0.11)  2.37  0.38
 Diluted  1.97  (0.11)  2.32  0.37
         
Weighted average number of shares used in computation:        
 Basic  248,339  251,042  251,338  251,338
 Diluted  252,082  251,042  257,161  257,161
 
China Lodging Group, Limited 
Unaudited Condensed Consolidated Statements of Cash Flows
  Quarter Ended
  June 30, 2014 March 31, 2015 June 30, 2015  
  RMB RMB RMB US$
  (in thousands)
Operating activities:        
 Net income (loss)  120,722  (7,216)  150,971  24,350
 Adjustments to reconcile net income to net cash provided by operating activities:        
 Share-based compensation  6,915  12,376  13,311  2,147
 Depreciation and amortization  136,972  160,213  166,535  26,860
 Deferred taxes  --   (7,476)  --   -- 
 Bad debt expenses  867  1,186  (1,447)  (233)
 Deferred rent  46,216  32,979  27,400  4,419
 Impairment loss  2,703  --   10,505  1,694
 Investment loss  (6,895)  1,455  173  28
 Excess tax benefit from share-based compensation  (206)  (1,197)  (2,019)  (326)
         
 Changes in operating assets and liabilities, net of effect of acquisitions:        
 Accounts receivable  (1,986)  (2,232)  (2,256)  (364)
 Prepaid rent  (11,765)  (6,494)  (28,617)  (4,615)
 Inventories  1,584  795  1,716  277
 Amounts due from related parties  3,397  --   --   -- 
 Other current assets  (30,490)  6,458  6,020  971
 Other assets  (7,052)  (5,748)  994  160
 Accounts payable  1,739  21,390  (7,620)  (1,229)
 Amounts due to a related party  316  (155)  1,647  266
 Salary and welfare payables  28,101  (70,396)  44,559  7,187
 Deferred revenue  78,325  7,262  75,048  12,105
 Accrued expenses and other current liabilities  14,934  59,689  (23,465)  (3,785)
 Income tax payable and receivable  28,845  (37,536)  24,225  3,907
 Other long-term liabilities  14,052  19,588  16,282  2,626
Net cash provided by operating activities   427,294  184,941  473,962  76,445
         
Investing activities:        
 Purchases of property and equipment  (153,575)  (290,967)  (100,964)  (16,285)
 Purchases of intangibles  (929)  (3,384)  (3,808)  (614)
 Amount received as a result of government zoning  --   1,000  --   -- 
 Acquisitions, net of cash received  (8,458)  (13,316)  (1,744)  (281)
 Purchases of long-term investments  (126,275)  (16,500)  (12,602)  (2,033)
 Proceeds from maturity/sale of long-term investments  82,785  2,513  3,612  583
 Payment for shareholder loan to joint venture  (14,207)  (1,252)  --   -- 
 Collection of shareholder loan from joint venture  --   --   749  121
 Purchases of short-term investments  --   (10,000)  (237,895)  (38,370)
 Proceeds from maturity/sale of short-term investments  --   1,001  862  139
 Decrease in restricted cash  1,000  --   --   -- 
Net cash used in investing activities  (219,659)  (330,905)  (351,790)  (56,740)
         
Financing activities:        
 Net proceeds from issuance of ordinary shares upon exercise of option  484  2,000  7,733  1,247
 Proceeds from short-term debt  --   --   100,000  16,129
 Repayment of short-term debt  --   --   (511)  (82)
 Repayment of funds advanced from noncontrolling interest holders  (400)  (240)  (441)  (73)
 Acquisition of noncontrolling interest  (2,042)  --   --   -- 
 Contribution from noncontrolling interest holders  --   --   2,250  363
 Dividend paid to noncontrolling interest holders  (369)  (796)  (3,212)  (517)
 Excess tax benefit from share-based compensation  206  1,197  2,019  326
Net cash provided by (used in) financing activities  (2,121)  2,161  107,838  17,393
         
Effect of exchange rate changes on cash and cash equivalents  47  (1,912)  316  51
         
Net increase (decrease) in cash and cash equivalents  205,561  (145,715)  230,326  37,149
Cash and cash equivalents at the beginning of the period  476,711  808,865  663,150  106,960
Cash and cash equivalents at the end of the period  682,272  663,150  893,476  144,109
 
China Lodging Group, Limited 
Unaudited reconciliation of GAAP and Non-GAAP Results
  Quarter Ended June 30, 2015
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  1,088,159 74.6%  1,898 0.1%  1,086,261 74.5%
Selling and marketing expenses  44,566 3.1%  281 0.0%  44,285 3.1%
General and administrative expenses  95,408 6.5%  11,132 0.8%  84,276 5.7%
Pre-opening expenses  31,553 2.2%  --  0.0%  31,553 2.2%
Total operating costs and expenses  1,259,686 86.4%  13,311 0.9%  1,246,375 85.5%
Income from operations  199,662 13.7%  13,311 0.9%  212,973 14.6%
             
  Quarter Ended June 30, 2015
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  US$    US$   US$  
  (in thousands)
             
Hotel operating costs  175,509 74.6%  306 0.1%  175,203 74.5%
Selling and marketing expenses  7,188 3.1%  45 0.0%  7,143 3.1%
General and administrative expenses  15,388 6.5%  1,796 0.8%  13,592 5.7%
Pre-opening expenses  5,089 2.2%  --  0.0%  5,089 2.2%
Total operating costs and expenses  203,174 86.4%  2,147 0.9%  201,027 85.5%
Income from operations  32,204 13.7%  2,147 0.9%  34,351 14.6%
             
  Quarter Ended March 31, 2015
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  1,058,624 87.5%  1,675 0.1%  1,056,949 87.4%
Selling and marketing expenses  45,828 3.8%  280 0.0%  45,548 3.8%
General and administrative expenses  77,942 6.4%  10,421 0.9%  67,521 5.5%
Pre-opening expenses  34,593 2.9%  --  0.0%  34,593 2.9%
Total operating costs and expenses  1,216,987 100.6%  12,376 1.0%  1,204,611 99.6%
Income (loss) from operations  (10,769) -0.9%  12,376 1.0%  1,607 0.1%
             
  Quarter Ended June 30, 2014
  GAAP Result % of Net Revenues Share-based Compensation % of Net Revenues Non-GAAP Result % of Net Revenues
  RMB   RMB   RMB  
  (in thousands)
             
Hotel operating costs  928,860 74.5%  1,263 0.1%  927,597 74.4%
Selling and marketing expenses  37,252 3.0%  201 0.0%  37,051 3.0%
General and administrative expenses  78,280 6.3%  5,451 0.4%  72,829 5.9%
Pre-opening expenses  50,072 4.0%  --  0.0%  50,072 4.0%
Total operating costs and expenses  1,094,464 87.8%  6,915 0.5%  1,087,549 87.3%
Income from operations  158,250 12.7%  6,915 0.5%  165,165 13.2%
 
China Lodging Group, Limited 
 Unaudited reconciliation of GAAP and Non-GAAP Results 
  Quarter Ended
  June 30, 2014 March 31, 2015 June 30, 2015  
  RMB RMB RMB US$
  (in thousands, except per share and per ADS data)
         
Net income (loss) attributable to China Lodging Group, Limited (GAAP)  124,244  (6,993)  149,186  24,062
Share-based compensation expenses  6,915  12,376  13,311  2,147
Adjusted net income (loss) attributable to China Lodging Group, Limited (non-GAAP)  131,159  5,383  162,497  26,209
         
Earnings (loss) per share (GAAP)        
 Basic  0.50  (0.03)  0.59  0.10
 Diluted  0.49  (0.03)  0.58  0.09
         
Earnings (loss) per ADS (GAAP)        
 Basic  2.00  (0.11)  2.37  0.38
 Diluted  1.97  (0.11)  2.32  0.37
         
Adjusted earnings per share (non-GAAP)        
 Basic  0.53  0.02  0.65  0.10
 Diluted  0.52  0.02  0.63  0.10
         
Adjusted earnings per ADS (non-GAAP)        
 Basic  2.11  0.09  2.59  0.42
 Diluted  2.08  0.09  2.53  0.41
         
Weighted average number of shares used in computation        
 Basic  248,339  251,042  251,338  251,338
 Diluted  252,082  251,042  257,161  257,161
         
  Quarter Ended
  June 30, 2014 March 31, 2015 June 30, 2015  
  RMB RMB RMB US$
  (in thousands)
         
Net income (loss) attributable to China Lodging Group, Limited (GAAP)  124,244  (6,993)  149,186  24,062
Interest income  (4,838)  (3,671)  (7,757)  (1,251)
Interest expenses  320  173  168  27
Income tax expense (benefit)  47,628  (934)  56,432  9,102
Depreciation and amortization  136,972  160,213  166,535  26,860
EBITDA (non-GAAP)  304,326  148,788  364,564  58,800
Share-based Compensation  6,915  12,376  13,311  2,147
Adjusted EBITDA (non-GAAP)  311,241  161,164  377,875  60,947
         
  Quarter Ended
  June 30, 2014 March 31, 2015 June 30, 2015  
  RMB RMB RMB US$
  (in thousands)
         
Net revenues (GAAP)  1,246,971  1,210,370  1,457,759  235,122
Less: Hotel operating costs  (928,860)  (1,058,624)  (1,088,159)  (175,509)
Hotel income (non-GAAP)  318,111  151,746  369,600  59,613
 
China Lodging Group, Limited
Operational Data       
  As of 
  June 30,  March 31,  June 30, 
  2014 2015 2015
Total hotels in operation:  1,669  2,177  2,384
 Leased hotels  590  617  616
 Manachised hotels  1,069  1,533  1,731
 Franchised hotels  10  27  37
Total hotel rooms in operation  179,186  227,542  246,344
 Leased hotels  69,900  74,180  74,758
 Manachised hotels  108,117  150,782  168,421
 Franchised hotels  1,169  2,580  3,165
Number of cities  270 314 323
       
       
       
  For the quarter ended
  June 30,  March 31,  June 30, 
  2014 2015 2015
Occupancy rate (as a percentage)      
 Leased hotels 91.1% 82.7% 87.3%
 Manachised hotels 91.2% 81.1% 85.3%
 Franchised hotels N/A 66.1% 73.9%
 Blended 91.2% 81.6% 85.8%
Average daily room rate (in RMB)      
 Leased hotels 191 182 201
 Manachised hotels 173 161 172
 Franchised hotels N/A 174 171
 Blended 180 168 181
RevPAR (in RMB)      
 Leased hotels 174 150 176
 Manachised hotels 158 131 146
 Franchised hotels N/A 115 126
 Blended 164 137 156
       
       
Same-hotel Operational Data: like-for-like performance for leased and manachised hotels opened for at least 18 months during the current quarter
       
  As of and for the quarter ended  
  June 30,   
  2014 2015  
Total Number of hotels  1,380  1,380  
 Leased hotels  552  552  
 Manachised hotels  828  828  
Occupancy rate (as a percentage) 93.7% 88.7%  
Average daily room rate (in RMB)  182  185  
RevPAR (in RMB)  171  164  
 
Hotel breakdown by segment
     
  Number of hotels in operation
  Net added  As of 
  in Q2 2015 June 30, 2015
Economy hotels  175  2,148
 HanTing Hotel  98  1,836
 Leased hotels  (1)  502
 Manachised hotels  99  1,334
 Hi Inn  42  231
 Leased hotels  (2)  39
 Manachised hotels  44  186
 Franchised hotels  --  6
 Elan Hotel  35  81
 Manachised hotels  29  71
 Franchised hotels  6  10
Midscale and upscale hotels  32  236
 JI Hotel  15  145
 Leased hotels  (1)  65
 Manachised hotels  16  80
 Starway Hotel  17  86
 Leased hotels  3  7
 Manachised hotels  10  58
 Franchised hotels  4  21
 Joya Hotel  --   3
 Leased hotels  --   2
 Manachised hotels  --   1
 Manxin Hotels & Resorts  --   2
 Leased hotels  --   1
 Manachised hotels  --   1
Total  207  2,384
 
Same-hotel operational data by segment
  Number of hotels in operation Same-hotel RevPAR Same-hotel ADR Same-hotel Occupancy
  As of For the quarter ended For the quarter ended For the quarter ended
  June 30, June 30, June 30, June 30,
  2014 2015 2014 2015 2014 2015 2014 2015
Economy hotels  1,293  1,293 165 157 175 176 94% 89%
 Leased hotels  505  505 168 161 179 181 94% 89%
 Manachised and franchised hotels  788  788 163 154 172 172 95% 89%
Midscale and upscale hotels  87  87 240 254 279 302 86% 84%
 Leased hotels  47  47 260 279 296 325 88% 86%
 Manachised hotels  40  40 209 213 249 261 84% 82%
Total  1,380  1,380 171 164 182 185 94% 89% 
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         Tel: +86 (21) 6195 9561
         Email: ir@huazhu.com
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